Walkers 1600 Arlington Business Park Theale Reading RG7 4SA Web: www.walkers.co.uk Key personnel President Martin Glenn Key brands Walkers Crisps Walkers Square Walkers Lites Walkers Max Quavers Monster Munch French Fries Cheetos Doritos Doritos Dippas Doritos 3d Despite recent suggestions that the bagged snacks market is growing in volume but not in value, Walkers takes a more positive view. Insights vice president Angus McIver says: "According to IRI, the total market is up in value 2.6% with grocery up 1.9% and impulse 3.8%. The slower growth in grocery is principally due to the deflation among a couple of key private label lines. It remains important to drive revenue and profit for our customers and we see the development of new occasions as being very important in this respect ­ hence our focus on developing evening and lunchtime snacking. Both these occasions demand higher revenue bags." McIver also believes that innovation is important in the snacks market, he says: "We look at innovation in three ways: genuine new differentiated products (or packages) not duplication, which offer consumers a point of difference. Doritos is one of the recent successful introductions that spring to mind. "We also believe that news around some of the big brands to grow the market organically is important ­ Heinz Tomato Ketchup on Walkers is a good example. "Lastly, the snacks market is a repertoire where consumers buy several brands and they like news. Here there is a small role for new snacks to encourage consumers to keep purchasing the category. Although it's a relaunch, Squares is a very good example ­ it's already the fourth biggest snack in impulse." But McIver believes there are many sub-scale ideas being launched that don't add anything to the category. He says: "We need to be choosier about what we support." McIver believes on the question of healthier eating there is still a relatively low demand for healthier snacks. "Consumers tend to look at our category as a little indulgence worth having without the taste compromise they believe inherent in healthy' snacks. "However, Walkers Lites range offers 30% less fat without a taste compromise, it's been doing very well this year after its recent new pack design and there will be more news and advertising on it next year. Also Doritos, that have less oil than standard crisps. And we are continuing to look at new initiatives that meet consumer needs in this area. McIver is clear about his advice to retailers: "They should look out for big ideas that will grow the category and support with display, as well as remaining focused on the core brands. This is an impulse market and we need to get more off-shelf display for growth and successful innovation." Display techniques are extremely important and McIver has this advice to retailers: "On the main fixture there are too many skus at the moment cluttering' it up and leading to off sales on the key lines ­ so retailers need to start simplifying their range. "Also, one of the most important things in the market is off-fixture display ­ secondary locations, such as, big bags near chilled dips and beer, multipacks near soft drinks and bread, single serve near sandwiches and soft drinks. "Lastly, we have work to do on making the category easier to merchandise and we will continue doing this, following on from the gravity feed packet merchandisers we currently supply to many retailers." {{Z SUPPLEMENTS }}

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